Light olefins
Overview
The global light olefins market is made up of ethylene and propylene monomers. These product markets can be affected by a great many factors.
Ethylene is the most widely used commodity chemical and is produced globally in all major regions. It is converted into many products used in daily life like plastic packaging, durable goods, hygiene products and other consumer items. The ethylene market is driven primarily by regions of low production cost and regions of high demand growth. Polyethylene, ethylene’s largest derivative, represents about 65pc of global ethylene demand. Anyone involved in the ethylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Propylene is the second most widely used commodity chemical and is produced globally in all major regions. Propylene is a volatile commodity because of its predominantly co-product nature and unpredictable supply, but recently the industry has been trending to more on-purpose production. It is converted into many products used in daily life like plastic packaging, durable goods, automotive products, and woven fabrics. Polypropylene, propylene ’s largest derivative, represents about 70pc of global propylene demand. Anyone involved in the propylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Our light olefins experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global market.
Latest light olefins news
Browse the latest market moving news on the global light olefins industry.
US PVC demand outlook softens on weak housing
US PVC demand outlook softens on weak housing
Houston, 21 April (Argus) — US polyvinyl chloride (PVC) participants are downgrading initial demand estimates from nominal growth to more stable expectations in the coming months because of downbeat housing variables. Many US PVC participants throughout March and April said early signs from housing data and customer sentiment did not point to a robust housing construction season in the coming months. PVC buyers have been hesitant to build inventory under such conditions, further slowing consumption because many are unsure when or if end-user demand will support initial purchases. Privately-owned housing permits were at a seasonally-adjusted annual rate of 1.482mn units in March, according to data from the US Census Bureau and the Department for Housing and Urban Development (HUD). While March permits rose by nearly 2pc from February, they fell by less than 1pc from year-ago levels. Single family permits stood at 978,000 units, down by 2pc from the prior month and lower by less than 1pc from the same time last year. Housing starts in March were at a seasonally-adjusted annual rate of 1.324mn units, about 11pc below February rates but nearly 2pc higher than a year earlier. Single-family starts declined by about 14pc to a 940,000 unit rate from the prior month. The latest builder sentiment survey for April maintained a cautious view for the single-family homes market, reversing nominally weaker sentiment from March, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Sentiment, though, remains well below the confidence seen at the start of the year, underpinning a weakening market. PVC participants are increasingly concerned that current and future tariffs imposed by President Donald Trump on critical trade partners will re-trigger inflation and thwart any future interest rate cuts by the Federal Reserve. Lower interest rates are largely regarded by PVC players as a bullish demand variable, especially in the housing sector. Federal Reserve chairman Jerome Powell did not ease market concerns last week, saying tariffs are likely to contribute to "higher inflation and slower growth" — or stagflation — and added markets were struggling "with a lot of uncertainty." Powell added that tariffs could challenge the Federal Reserve's dual mandate of maintaining price stability while fostering maximum job growth, leaving policymakers to wait for greater clarity on economic impacts before making any adjustments to interest rates. By Aaron May Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
EU exempts most LLDPE imports from retaliatory tariffs
EU exempts most LLDPE imports from retaliatory tariffs
London, 10 April (Argus) — Most linear low density polyethylene (LLDPE) imports will be exempt from EU retaliatory tariffs should the bloc go ahead with countermeasures against the US, according to a draft list of products seen by Argus . The EU has put the retaliatory tariffs on hold for now, after US president Donald Trump announced on Wednesday that he is pausing his planned "reciprocal" tariffs for 90 days. The European Commission has yet to publish the final list of US products that would be subject to any countermeasures, but before Trump's surprise move, the HS code 39014000 was removed. The list was approved by a majority vote of EU member states on Wednesday . Other HS codes of PE grades were included in the draft list and are earmarked for 25pc tariffs. It is now uncertain if and when the EU tariffs might be implemented. Prior to Trump's u-turn, 15 May was the likely date for EU tariffs on US PE imports. But "everything is paused," European Commission trade spokesperson Olof Gill told Argus . LLDPE imports into the EU are categorised under the HS codes 39014000 and 39011010. The former made up just over half of all PE imports to the EU from the US in 2024, while the latter accounted for less than 12pc. The EU's PE imports from the US totalled 1.8mn t last year. Market participants told Argus that the EU will remain dependant on LLDPE imports from the US for specific grades, which include LLDPE butene and metallocene LLDPE. The UK also excluded US-origin LLDPE imports falling under the HS code 390140 from its provisional list of products that could be subject to retaliatory tariffs. By Sam Hashmi and Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US PE exports could lose market share on new tariffs
US PE exports could lose market share on new tariffs
Houston, 4 April (Argus) — US polyethylene (PE) traders are concerned that retaliatory tariffs announced this week by China and being considered by the European Union will close the door to two of the biggest markets for US resin exports. China announced today it will impose a 34pc tariff on all imports from the US from 10 April, while the EU is in the process of finalizing countermeasures this week, all in response to widespread tariffs announced by US president Donald Trump on 2 April. "This closes off China," said one US export trader. "And it looks like a full stop in Europe too." The US exported 2.4mn t of PE to China in 2024, representing 16.8pc of total US PE exports, according to data from Global Trade Tracker. Exports to the EU totaled 2.26mn t, representing 15pc of all US exports. US PE exports in 2024 totaled 14.2mn t, with exports representing 47pc of total sales last year. During the previous Trump administration, China provided waivers for certain tariffs, including on some PE grades. Some market participants have said that may be possible again, while others have said they see it as less likely, as China has become more self-sufficient, and has other alternative suppliers, such as the Middle East. "(China) is in a better position to impose tariffs on PE today than they were in 2018," said one North American PE producer. It will be difficult for US producers to make up for the loss of market share in China and the EU, which could result in producers needing to slow operating rates. For now, markets in Africa, Latin America and southeast Asia, remain open for US material, but traders are concerned that other top trading partners could also retaliate against the US, closing off additional markets. "There are not enough places to go with this stuff," the trader said. With limited export opportunities, the North American PE producer agreed that production would likely need to slow to keep material from backing up in the domestic market and causing domestic prices to fall. "The last time we saw tariff action from China, there was an impact on the domestic market," the producer said. "Pricing went down." For this week, US PE export pricing has held fairly steady as the market absorbs the tariff news. But market participants said they believe prices could move down in the coming weeks if production is not slowed. By Michelle Klump Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US-origin PE, PP appear in provisional UK tariff list
US-origin PE, PP appear in provisional UK tariff list
London, 4 April (Argus) — The UK government has included polyethylene (PE) and polypropylene (PP) imports from the US in a list of products that could be subject to retaliatory tariffs. All PE and PP HS codes appear on the list published on 3 April. The document is at this stage for consultation and only indicative of goods that could fall under the review. No details are known so far on the tariff levels nor when they could be implemented, although the deadline for responses is 1 May. This comes after US President Donald Trump's announcement on 2 April of a minimum 10pc global levy on imports from all trade partners, in addition to existing levies. The tariff on imports from the UK is 10pc, and from the EU 20pc. The UK imported 173,000t of PE from the US in 2024 and 7,000t of PP. LLDPE under HS code 390140 was omitted from the UK tariff list, a grade which accounts for 45pc of all UK PE imports from the US. This means that 96,000t of PE would fall under the provisional tariffs. The UK has "a range of levers" at its disposal for responding to the US' levies and will continue speaking with Washington on an "economic prosperity deal", UK prime minister Keir Starmer said on 3 April. The import tariffs imposed by the US on 2 April present a "significant risk" to the global economy, according to the IMF . President Trump is holding firm on the tariffs , even as US stock prices tumble, but other US politicians are less convinced. The US Senate is attempting to block tariffs , but legislative action is unlikely to become law. By Tim van Gardingen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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